Which of the Following Is an Advantage of a Line

question 245

Multiple Choice

Which of the following is an advantage of a line organization in a large business?

• A) It does not require specialists to advise people along the line.
• B) Responsibility and authority are clearly defined.
• C) Each worker has several supervisors.
• D) It is very flexible.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or job orders, calculated before the accounting period begins.

Direct Labor-Hour

The total amount of time spent by workers directly involved in the production of goods or services, often used in cost accounting.

Manufacturing Overhead Budget

An estimation of all manufacturing costs excluding direct materials and direct labor, planned over a specific period.

Cash Disbursements

The outflow of cash for expenses, purchases, or investments by a business, recorded in the cash disbursements journal.